ITC shares plunge nearly 4% on worries govt to raise excise duty in Budget 2016

ITC shares fell as much as 3.70 per cent on Monday on worries that the government may raise excise duties for cigarettes in the upcoming Union Budget 2016 on February 29.

At 12.53 pm, shares of ITC were trading 2.31 per cent down at Rs 297.80. The scrip opened at Rs 304 and has touched a high and low of Rs 304 and Rs 293.65, respectively, in trade so far. The BSE FMCG index was trading 0.07 per cent down at 7,201.43.

Later, the scrip closed 1.72 per cent down at Rs 299.60. Sensex closed 79.64 points, or 0.34 per cent, up at 23,788.

Deutsche Bank expects 5 per cent rise in excise duty.

ITC shares shed nearly 26 per cent of its value from an all-time high hit of Rs 409.70 on Feb 28, 2015, in part due to higher duties.

StarMine Intrinsic Valuation model pegs fair value for ITC shares at Rs 287.55.

(With inputs from Reuters)